12-2904a.   Same; powers and duration of separate legal entities createdthereby; certain functions prohibited.(a) Any interlocal agreement entered into under theprovisions of K.S.A. 12-2901 et seq., and amendments thereto, mayauthorize the creation of a separate legal entity to conduct the joint orcooperative action provided for in the agreement. Such separate legalentity shall constitute a body corporate and politic, and shall have, inaddition to any other powers reasonably necessary to the exercise of itsfunction under the agreement, the following powers to:

      (1)   Sue and be sued in its corporate name;

      (2)   take and hold any property, real or personal, in fee simple or otherwise;

      (3)   sell, lease, lend or otherwise transfer any property or interest inproperty owned by it;

      (4)   make contracts; and

      (5)   have and use a corporate seal.

Any such separate legal entity shall not constitute a municipality withinthe meaning of K.S.A. 10-1101, and amendments thereto, or a politicalsubdivision of the state under any provision of the law of this stateestablishing limits on bonded indebtedness.

      (b)   In addition to its other powers, any separate legal entity referredto in this section shall be authorized, subject to any limitations imposedby contract, to issue bonds, notes or other evidence of indebtedness, inits own name, on behalf of the public agencies that are or become parties to theagreement creating the separate legal entity for those purposes for whichsuch public agencies are authorized pursuant to the constitution and lawsof this state to issue bonds, notes or other evidence of indebtedness. Such bonds, notes or otherindebtedness may be payable from or secured by any property, interest orincome of the separate legal entity, from whatever source derived, butshall not constitute a charge against or indebtedness of any public agencyon behalf of which such bonds, notes or other indebtedness are issued. Inissuing such bonds, notes or other indebtedness, the separate legal entityshall act as the constituted authority of the public agencies on behalf ofwhich such bonds, notes or other indebtedness are issued, and the intereston such bonds, notes or other indebtedness shall be exempt from taxationunder the laws of this state.Nothing in this act shall be construed to authorize any separate legalentity to issue or sell bonds, notes or other evidence of indebtedness, oruse the proceeds thereof, to purchase, condemn, or otherwise acquire autility plant or distribution system owned or operated by a regulatedpublic utility as defined by K.S.A. 66-104 and amendments thereto.

      (c)   The duration of any separate legal entity referred to in thissection may be perpetual or as otherwise provided in the agreement underwhich it was created; however, any property owned or held by such separatelegal entity shall become the property of the public agencies that areparties to such agreement, according to the terms of that agreement or asotherwise determined according to equitable principles, if and when at anytime no bond, note or other indebtedness of the authority is not currentlyoutstanding and unpaid. No property of such separate legal entity shallinure to the benefit of any private individual, corporation or associationother than for fair value received.

      (d)   No such separate legal entityshall operate or administer any arrangement or program under which any twoor more municipalities, as defined in K.S.A. 75-6102, and amendmentsthereto, have agreed to pool their liabilities incurred as a result ofnegligent or wrongful act or omission of their employees or any otherliabilities or losses incurred by such municipalities regardless of the cause thereof.

      History:   L. 1987, ch. 60, § 8; May 28.